Daily independent. [volume] (Elko, Nev.) 188?-1915, 1887-11-29
NOVEMBER 20, 1887
COMMENTS ON CURRENCY.

we are In receipt OF CIRCULAR neaQeO
as above and entitled "a Plan for Per-
fecting and Psrpetusting the National
Bank System" by john Thompson,
Vice President of the Chase National
Bank. After some remarks on the diff
ferent kinds of money and drawing a
contrast between real money and token
money, in which National Bank notes
are designated as real money, Mr..
Thompson says:
Stringency is always intensified by
boarding, and the smaller the volume
Of real money the more active this dan
gerous element becomes. Therefore, it
becomes necessity to devise some plan
that will give us more real money.
How this shall be done ID one of the
questions which will come before Con-
gress, and is very interesting to every
business man-yes, every American
citizen"
A method is chalked ont for the ac-
complishment of the plan to give us
more "rear' money, the first PROPOSE
ton of which is as follows:
"Permit the banks to discontinue the
deposit of Government bonds as security
tor currency"
Without going any further the above
il sufficient to condemn the scheme in
the estimation of anyone not pecuniari-
ly Interested in National Banks, for
while we have always held that such
banks are accorded peculiar privileges
by the Government and hencs are not
conducted in the interest of the people
but rather for the benefit Of the share
holders. yet the fact that they are com.
PEELED to make their circulation abso-
lutely SAFE in the hands of the people by
deposit of United States Bonds with
the Treasurer of the United States, is
the only redeeming feature of the insti-
tuition. Take this safeguard away and
what rave we more than banking sys.
TEN similar in op ,rati3n to that which oh
taintd years ago when every business
man was compelled to keep a Bank
Note Reporter at hand which was con-
Brlted whenever bill was presented in
order to find out what commercial value
it had. Mr.. Thompson concludes his
articl, as follows:
"Should the suggested amendments
to the bank act be- adopted, 10 il my
estimate that in three years 500 millions
Of National bank note currency will be
In circulation and the guarantee fund
will exceed ten millions of dolllrs.
When this fund becomes unnecessarily
large (as it surely willy q judicious
portion OF it could be covered into the
Treasury
No better argument against the adop-
ton of the proposed amendments could
be offered than the above paragraph.
What interest is it to the people of the
Uaited States that the National Bank
system sho1ll be ''perpetuatad, or
that they should be permitted to float u
circulation of 500 millionsp Most az.
saredlv if all restraint was removed
from these banks the circulation would
become unnecessarily large" The
scheme is one who lily in the interest of
the National Banks and We have too
much faith in the integrity Of Congress
TO believe that this pernicious scheme
will ever be adopted.
That paper currency is essential in
the transaction of the vaat business of
the country is apparent to every lntelli-
gent mind; and that this currency
shonld DO issued directly by the United
Suites In the shape Of Silver Certificates,
Coll Certificates and Greenbaoks, re-
deemable in coin at the pleasure of the
holder, we believe is equally apparent
to nine tenths OF the people Of this
Government, outside Of the hollers of
National Bank stock. We are opposed
to the ''psrpetuation" OF the National
Bank system, opposed to the oharterinR
Of new banks or tho extension of the